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Agere Systems Reports First Quarter of Profit on Sequential Revenue Increase of 11 Percent in Fourth Quarter of Fiscal 2003 Tuesday October 28, 7:03 am ET Company reports strongest quarter since IPO: -- First quarter of profit, with earnings of $0.01 per share on GAAP basis -- Revenue increase of 11 percent sequentially and 3 percent over year- ago quarter -- First quarter of positive cash flow from operations, less capital expenditures ALLENTOWN, Pa., Oct. 28 /PRNewswire-FirstCall/ -- Agere Systems (NYSE: AGR.A - News, AGR.B - News) today reported that revenues for its fourth quarter of fiscal 2003, ended September 30, 2003, were $504 million, up 11 percent from revenues in the June quarter, and up 3 percent from revenues in the year-ago quarter. The revenue increase was driven by an 18 percent sequential growth in the company`s Client Systems business, with strength in sales of chips for cell phones, hard disk drives and other PC-related applications. For the full fiscal year 2003, Agere reported revenues of $1.84 billion, exceeding the company`s July guidance. The company`s revenues in fiscal 2002 were $1.92 billion. The company reported its first profit since its IPO, with earnings of $11 million or $0.01 per share on a GAAP basis for the September quarter, compared with a loss of $78 million, or $0.05 per share in the June quarter, and a loss of $885 million, or $0.54 per share in the year-ago quarter. For the full fiscal year 2003, the company reported a net loss of $338 million, or $0.20 per share, compared to fiscal 2002 net loss of $1.81 billion, or $1.11 per share. The company also reported its first quarter of positive cash flow from operations, less capital expenditures, of $17 million. The company improved cash and cash in trust by $16 million sequentially to $765 million, the company`s third consecutive quarterly increase. "We are very pleased to report the strongest quarter in our history as a public company," said John Dickson, president and CEO, Agere. "We met or exceeded every financial target we set, including achieving profitability and positive cash flow. With the completion of our manufacturing consolidation, we significantly improved our gross margins, which exceeded 40 percent for the first time since our IPO. "At the same time, our sharpened focus on areas such as cell phones, storage and PC-related applications enabled us to increase our revenues both sequentially and year-over-year. We are investing strategically to expand our market opportunities: in 2003, we introduced a portfolio of RF transistor products targeting a $500 million opportunity, and made our first acquisition to address the projected $1 billion Gigabit Ethernet IC market. "With our strong financial performance, a focused product investment strategy and deep relationships with leading customers, we are building an exciting future for Agere," added Dickson. The company was also profitable on a pro forma net income basis, with earnings of $47 million, or $0.03 per share in the September quarter, compared to a pro forma net loss of $74 million, or $0.04 per share in the June quarter, and pro forma net loss of $39 million, or $0.02 per share in the year-ago quarter. For the full fiscal year 2003, the company reported a pro forma net loss of $253 million, or $0.15 per share, compared to a pro forma net loss of $565 million or $0.35 per share in fiscal 2002. Pro forma net income excludes gain or loss from the sale of, and income or loss from, discontinued operations; net restructuring and other charges; amortization of goodwill and other acquired intangibles; net gain or loss from the sale of operating assets and cumulative effect of an accounting change. Results by Segment The Client Systems Group reported revenues of $381 million for the September quarter, up 18 percent sequentially, and up 15 percent over year-ago quarter revenues of $330 million, driven by growth in chips for cell phones, hard disk drives and other PC-related applications. The Infrastructure Systems Group reported revenues of $123 million, down 7 percent from revenues of $132 million in the June quarter, related to continuing softness in the telecommunications networking market. The group posted revenues of $161 million in the year-ago quarter. Highlights for the fourth fiscal quarter include: -- Acquisition of Massana Ltd., a privately held developer of Gigabit Ethernet-over-copper physical layer device (PHY) semiconductor solutions. The acquisition will allow Agere to address the Gigabit Ethernet IC market, which is projected by research firm InStat/MDR to be more than $1 billion in 2007. -- Announcement that Agere is delivering its high-performance WaveLAN(TM) 802.11a/b/g multimode wireless networking chip set to leading original design manufacturers (ODMs). Agere demonstrated this solution at the Computex trade show in Taiwan. -- Achievement of the 100-million mark in shipments of systems-on-a-chip (SoC) solutions for storage hard disk drives, an industry first. Agere`s SoCs provide superior performance and high data rates for hard disk drives (HDDs) deployed in desktop, mobile and consumer electronic devices. -- Establishment of a new design center to focus on third-generation (3G) wireless communications silicon and systems technology development. The group`s work encompasses the WCDMA/UMTS 3G standard, as well as future standards such as High-Speed Downlink Packet Access (HSDPA). -- Announcement of a new advanced messaging interface (AMI) for enabling high-speed communications and applications processing in Smartphones and next-generation mobile phones. -- Introduction of the new APP100 co-processor, which processes voice signals at speeds up to 622 megabits per second - four times faster than competing chips. In addition, the chip can simultaneously process 32,000 voice channels, eight times more than existing solutions. The APP100 connects directly and is sold as a solution with Agere`s industry-leading APP500 5 Gbits/s family of single chip network processor chips. Outlook The company expects revenues in the December quarter to be in the range of $500 million to $510 million, with growth of about 5 percent in the Client Systems Group, offset by lower revenues in the Infrastructure Systems Group and a seasonal drop in intellectual property (IP) licensing. The company expects pro forma (non-GAAP) net income to be breakeven, plus or minus $0.01 per share in the December quarter. On a GAAP basis, the company expects net loss to be in the range of $0.01 to $0.04 per share, including restructuring costs related to the decommissioning of Agere`s facilities in Pennsylvania. The company notes that its board of directors has decided not to pursue a reverse stock split. Earnings Webcast Agere Systems will host a conference call today at 8:30 a.m. EST to discuss its financial results. To listen to the conference call via the Internet, visit http://www.agere.com/webcast." target="_blank" rel="nofollow ugc noopener">http://www.agere.com/webcast. Subsequent to the conference call, a replay will be available at the same web address. Agere Systems is a premier provider of advanced integrated circuit solutions for wireless data, high-density storage and multiservice networking applications. Agere`s wireless data portfolio enables seamless network access and Internet connectivity through its GPRS offering for data-capable cellular phones, as well as Wi-Fi/802.11 solutions for wireless LANs and computing applications. The company is the market leader in providing integrated circuits for the hard disk drive market, with number one positions in sales of system-on-a-chip solutions and preamplifiers. Agere also provides custom and standard multiservice networking solutions to move information across wired, wireless and enterprise networks. Agere`s customers include the leading PC manufacturers, wireless terminal providers, network equipment suppliers and hard-disk drive providers. For more information, visit Agere`s web site at http://www.agere.com This release contains forward-looking statements based on information available to Agere as of the date hereof. Agere`s actual results could differ materially from the results stated or implied by such forward-looking statements due to a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, the impact of any global or regional health epidemic, such as severe acute respiratory syndrome, keeping pace with technological change, dependence on new product development, price and product competition, availability of manufacturing capacity, customer demand for our products and services, general industry and market conditions, timely completion of employment reductions and other restructuring and consolidation activities, limits on our ability to issue equity to raise capital and reliance on major customers and suppliers. For a further discussion of these and other risks and uncertainties, see our annual report on Form 10-K for the fiscal year ended September 30, 2002, and our quarterly report on Form 10-Q for the period ended June 30, 2003. Agere disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Agere Systems Inc. Unaudited Condensed Consolidated Statements of Operations (Dollars in millions except per share amounts) Quarter Ended Year Ended Sep 30 Jun 30 Sep 30 Sep 30 Sep 30 2003 2003 2002 2003 2002 Revenue $504 $456 $491 $1,839 $1,923 Costs 290 321 304 1,260 1,429 Gross profit - $ 214 135 187 579 494 Gross profit - % 42.5% 29.6% 38.1% 31.5% 25.7% Operating Expenses Selling, general and administrative 67 76 62 294 326 Research and development 107 117 139 467 625 Amortization of goodwill and other acquired intangibles 1 2 10 8 34 Restructuring and other charges - net 32 6 361 131 503 Gain on sale of operating assets - net (8) (15) (54) (21) (299) Total operating expenses 199 186 518 879 1,189 Operating Income (Loss) 15 (51) (331) (300) (695) Other income - net 3 3 7 22 76 Interest expense 12 11 25 47 121 Income (loss) from continuing operations before income taxes 6 (59) (349) (325) (740) Provision (benefit) for income taxes (16) 8 7 46 63 Income (loss) from continuing operations 22 (67) (356) (371) (803) Discontinued Operations: Income (loss) from operations of discontinued business - net of taxes (11) - (529) 8 (1,008) Gain (loss) on disposal of discontinued business - net of taxes - (11) - 30 - Income (loss) from discontinued operations (11) (11) (529) 38 (1,008) Income (loss) before cumulative effect of accounting change 11 (78) (885) (333) (1,811) Cumulative effect of accounting change - net of taxes - - - (5) - Net Income (Loss) $11 $(78) $(885) $(338) $(1,811) Basic and diluted income (loss) per share information: Income (loss) from continuing operations $0.01 $(0.04) $(0.22) $(0.22) $(0.49) Income (loss) from discontinued operations - (0.01) (0.32) 0.02 (0.62) Income (loss) before cumulative effect of accounting change 0.01 (0.05) (0.54) (0.20) (1.11) Cumulative effect of accounting change - - - - - Net income (loss) $0.01 $(0.05) $(0.54) $(0.20) $(1.11) Weighted average shares outstanding--basic (in millions) 1,686 1,678 1,641 1,667 1,637 Weighted average shares outstanding--diluted (in millions) 1,706 1,678 1,641 1,667 1,637 Agere Systems Inc. Unaudited Pro Forma Results of Operations (Dollars in millions except per share amounts) Quarter Ended Year Ended Sep 30 Jun 30 Sep 30 Sep 30 Sep 30 2003 2003 2002 2003 2002 Revenue Client $381 $324 $330 $1,321 $1,259 Infrastructure 123 132 161 518 664 Total Revenue 504 456 491 1,839 1,923 Gross Profit - $ * Client 135 63 142 282 369 Infrastructure 79 72 45 297 125 Total Gross Profit - $ 214 135 187 579 494 Gross Profit - % Client 35.4% 19.4% 43.0% 21.3% 29.3% Infrastructure 64.2% 54.5% 28.0% 57.3% 18.8% Total Gross Profit - % 42.5% 29.6% 38.1% 31.5% 25.7% Operating Expenses Included in Pro Forma Results Selling, general and administrative 67 76 62 294 326 Research and development 107 117 139 467 625 Pro Forma Operating Income (loss) Client 36 (48) 51 (148) (73) Infrastructure 4 (10) (65) (34) (384) Total Pro Forma Operating Income (Loss) 40 (58) (14) (182) (457) Other income - net 3 3 7 22 76 Interest expense 12 11 25 47 121 Provision (benefit) for income taxes (16) 8 7 46 63 Pro Forma Net Income (Loss) $47 $(74) $(39) $(253) $(565) Pro Forma Net Income (loss) per share $0.03 $(0.04) $(0.02) $(0.15) $(0.35) Weighted average shares outstanding--basic (in millions) 1,686 1,678 1,641 1,667 1,637 Weighted average shares outstanding--diluted (in millions) 1,706 1,678 1,641 1,667 1,637 Reconciliation of Pro Forma Operating Income (Loss) to Operating Income (Loss) Pro Forma Operating Income (loss) $40 $(58) $(14) $(182) $(457) Amortization of goodwill and other acquired intangibles 1 2 10 8 34 Restructuring and other charges - net 32 6 361 131 503 Gain on sale of operating assets - net (8) (15) (54) (21) (299) Operating Income (loss) $15 $(51) $(331) $(300) $(695) Reconciliation of Pro Forma Net Income (Loss) to Net Income (Loss) Pro Forma Net Income (loss) $47 $(74) $(39) $(253) $(565) Amortization of goodwill and other acquired intangibles 1 2 10 8 34 Restructuring and other charges - net 32 6 361 131 503 Gain on sale of operating assets - net (8) (15) (54) (21) (299) Income (loss) from operations of discontinued business - net of taxes (11) - (529) 8 (1,008) Gain (loss) on disposal of discontinued business - net of taxes - (11) - 30 - Cumulative effect of accounting change - net of taxes - - - (5) - Net Income (loss) $11 $(78) $(885) $(338) $(1,811) * Gross Profit includes $17, $32 and $26 of cost associated with restructuring activities for the three months ended September 30, 2003, June 30, 2003, and September 30, 2002, respectively, and $103 and $59 for the year ended September 30, 2003 and 2002, respectively. Agere Systems Inc. Unaudited Condensed Consolidated Balance Sheets (Millions) Sep 30 Jun 30 Sep 30 2003 2003 2002 ASSETS CURRENT ASSETS Cash and cash equivalents $744 $731 $891 Cash held in trust 21 18 16 Trade receivables 265 262 256 Inventories 122 140 190 Other current assets 52 61 103 TOTAL CURRENT ASSETS 1,204 1,212 1,456 Property, plant and equipment - net 775 791 1,028 Assets held for sale 3 14 - Goodwill and other acquired intangibles - net 117 94 101 Other assets 284 285 279 TOTAL ASSETS $2,383 $2,396 $2,864 LIABILITIES AND STOCKHOLDERS` EQUITY CURRENT LIABILITIES Accounts payable $245 $235 $269 Short-term debt 195 183 197 Other current liabilities 617 691 801 TOTAL CURRENT LIABILITIES 1,057 1,109 1,267 Long-term debt 451 465 486 Other liabilities 369 358 379 TOTAL LIABILITIES 1,877 1,932 2,132 STOCKHOLDERS` EQUITY 506 464 732 TOTAL LIABILITIES AND STOCKHOLDERS` EQUITY $2,383 $2,396 $2,864 Agere Systems Inc. Unaudited Net Income (Loss) Per Share Guidance Quarter Ending Dec 31 2003 Reconciliation of Pro Forma Net Income (Loss) Per Share to Net Loss Per Share Pro Forma Net Income (High End of Range) $0.01 Pro Forma Net Loss (Low End of Range) $(0.01) Restructuring and other charges - net (0.02)-(0.03) Net Loss (High End of Range) $(0.01) Net Loss (Low End of Range) $(0.04) -------------------------------------------------------------------------------- Source: Agere Systems |
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| aus der Diskussion: | Agere Systems - wer ist investiert? |
| Autor (Datum des Eintrages): | Jetok (28.10.03 20:37:16) |
| Beitrag: | 31 von 107 (ID:11157885) |
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